FE Planning And Funding 2008/09

Slide 1: Planning & Funding Len Tildsley DIRECTOR OF CURRICULUM & INFORMATION Len Tildsley • November 2007 1

Slide 2: Len Tildsley • November 2007 2

Slide 3: Planning & Funding  The Planning Context  The 08/09 Funding Mechanism  Business & Provision Planning Len Tildsley • November 2007 3

Slide 5: The Planning Context Len Tildsley • November 2007 5

Slide 6: Grant Letter  14-19 Learning  Adult Skills  Sustainable employment & progression  Reforming the system Len Tildsley • November 2007 6

Slide 7: LSC Statement of Priorities  National Statement accompanying the government grant letter  “Better Skills, Better Jobs, Better Lives”  Covers 08/09 to 10/11  Published 16th November 2007 Len Tildsley • November 2007 7

Slide 8: Targets & Priorities  Priority 1 : Creating Demand for Skills  Priority 2 : Transforming FE  Priority 3 : Better Skills, Better Jobs, Better Lives Len Tildsley • November 2007 8

Slide 9: Creating Demand for Skills …more people to demand more learning because they are clear about the social and economic benefits that it brings. Len Tildsley • November 2007 9

Slide 10: Creating Demand for Skills  Young People • 90% of 17 year olds in learning by 2013 • 90% of 18 year olds in learning by 2015 • 82% of 19 year olds achieving L2 by 2011 • 54% of 19 year olds achieving L3 by 2011 • NEETs 2% lower by 2010 Len Tildsley • November 2007 10

Slide 11: Creating Demand for Skills  Young People • LSC to work with Connexions and LEA to ensure that the supply of provision matches demand • The ‘September Guarantee’ • Greater flexibility – able to start in January • More Apprenticeship places - matching • National entitlement to diploma places • Clear L1 and pre-vocational offer • Clear progression routes to HE and employment Len Tildsley • November 2007 11

Slide 12: Creating Demand for Skills  Adults • Bias funding towards those without skills and qualifications • Link funding to ‘skills accounts’ • Adult careers service • Personal learning – time and location • Increased full-cost work • Open College buildings for community use Len Tildsley • November 2007 12

Slide 13: Creating Demand for Skills  Employers • Use ESF funding to extend TtG service • Numeracy, Literacy and ESOL available as stand-alone options through TtG • Adult Apprenticeships merged with TtG • Part-funded 2nd L3 pilot through TtG • Full-funded 2nd L2 to retrain unemployed • Progress towards funding only SQS qualifications • Fund more employers to provide their own apprenticeship programmes Len Tildsley • November 2007 13

Slide 15: Transforming FE  Align fees policies across all publicly funded provision  Increase income through fees and full-cost work  Focus on income targets  Fully integrate ESF funding  Fairer funding methodology  Establish Framework for Excellence  Develop The Qualifications & Credit Framework Len Tildsley • November 2007 15

Slide 16: Transforming FE  £2.3bn of capital investment  Allow non-FE providers to bid for LSC capital funding  Embed and Extend ILT  Drive CPD  Work with leading colleges to ‘blueprint’ future business models  Increase the number of national skills academies  Increased commissioning and tendering to fill skills gaps Len Tildsley • November 2007 16

Slide 18: Better Skills, Better Jobs, Better Lives “We want to increase the sector’s focus on integrating skills with employment so that more people get the training and qualifications they need to come off benefits, enter work and progress - more of the learning we fund to result in job outcomes.” Len Tildsley • November 2007 18

Slide 19: Better Skills, Better Jobs, Better Lives  Protect opportunities for students with learning difficulties and/or disabilities  Protect funding for PCDL and neighbourhood learning in deprived communities  Protect funding for ESOL and learning below L2 that forms the FLT. Len Tildsley • November 2007 19

Slide 20: Better Skills, Better Jobs, Better Lives  Focus funding on FLT, Skills for Life and Level 2  People and communities most excluded from the labour market and those in ‘vulnerable’ employment  Numeracy skills  Offender learning Len Tildsley • November 2007 20

Slide 21: Better Skills, Better Jobs, Better Lives  All young people to take part in work experience  Employers encouraged to recruit untrained or low-skilled staff to access supported training (inc. Pre-employment) through TtG.  Employability skills programmes for the unemployed  Higher skills programmes in conjunction with HEFCE Len Tildsley • November 2007 21

Slide 22: Becoming Demand Led  Common funding mechanism for all 16-19 year olds  Common approach to funding ‘New Diplomas’ for all 14-19 year olds  All vocational skill funding to move towards skills accounts and Train2Gain • £500m in skills accounts by 2011 • £1.5bn in skills accounts by 2015  50:50 balance between funding and fees Len Tildsley • November 2007 22

Slide 23: Demand Led – First Steps  More sophisticated commissioning of provision – focussed on social inclusion  New funding models – learner and employer choice  Qualification reform  Increase MLP acceptable rates  FE self regulation by 2012 Len Tildsley • November 2007 23

Slide 24: Demand Led Funds Len Tildsley • November 2007 24

Slide 25: Commissioning 1  Sector Skills Council priority qualifications  14-19 • Partnerships • Colleges • Schools • WBL Providers  LEA to run ‘competitions’ to fulfil perceived gaps in provision > 200 places Len Tildsley • November 2007 25

Slide 26: Commissioning 2  Adult Learners • LLDD, PCDL, FLT, S4L • Full Level 2, Full Level 3 • Whole qualifications at Level 4  Negotiated volumes with existing providers  Further negotiation or tendering to fill gaps Len Tildsley • November 2007 26

Slide 27: Commissioning 3  Provision for employers • Accelerate the expansion of TtG • Reward excellence • New providers linked to employer choice • New providers from competitive tendering • Multi-year contracts • Contract values varied in-year Len Tildsley • November 2007 27

Slide 28: Qualification Reform 1  Qualifications ‘fit for purpose’  Smaller ‘chunks’  Sector qualification strategies (End of Nov)  Funding discontinued for a large number of qualifications – progressive  Employer and Provider developed training eligible for full QCF approval by 2010 Len Tildsley • November 2007 28

Slide 29: Qualification Reform 2  Foundation Learning Tier (FLT) • Intended to improve progression to L2 • Enhance ‘employability’ • Majority of sub L2 provision will be units and qualifications in FLT • Will replace E2E and LLDD provision Len Tildsley • November 2007 29

Slide 30: Raising and Assuring Quality  Eliminate inadequate provision in FE  Minimum levels of performance • More areas of provision • Increased rates for 08/09  TtG Providers expected to move towards success rates >80% Len Tildsley • November 2007 30

Slide 31: Minimum Levels of Performance Len Tildsley • November 2007 31

Slide 32: Self Regulation  A new relationship between the LSC and the FE system  LSC to discuss, in detail, what we offer  How we respond to learner, employer and community needs  Support the integration of employment and skills  Demand Led funding = financial planning challenge  Transitional arrangements and support Len Tildsley • November 2007 32

Slide 33: Funding Allocations 1  16-18 • New funding system • Average rate increase of 2.1% • No funding for transferred qualifications • Keys skills removed from entitlement funding • Reduce funding for L3 learning • 40,000 ‘new diploma’ places funded by LSC Len Tildsley • November 2007 33

Slide 34: Funding Allocations 2  Adult Learners • Funding targeted – those excluded from the labour market • Total number of funded learners expected to reduce • Longer or more substantial programmes • In-year and end-year reconciliation • No viament to other categories • Average funding rate increase of 1.5% • At least 15% to deliver Full L2 • At least 10% to deliver Full L3 Len Tildsley • November 2007 34

Slide 35: Funding Allocations 3  Employer Driven • Rapid expansion of TtG • >£160m of adult FE funding moved to TtG • Scope to include L3 and Higher Skills • S4L to be available independantly • 20,000 more aged 19-25 apprentices • £30m for aged 25+ apprentices Len Tildsley • November 2007 35

Slide 36: Exercise 1 In your table groups compare the college today with the college we need to become if we are to respond to the priorities and changes outlined for the sector over the next three years. Agree your top THREE priority changes and text them along with your name to... 07703 ?????? One text per table ! Len Tildsley • November 2007 36

Slide 39: Funding Systems School 6th Forms Responsive 16 to 18 Learner E2E Adult Further Education Responsive 16 to 18 Employer Apprenticeships Adult Train to Gain Len Tildsley • November 2007 39

Slide 40: School 6th Forms Responsive 16 to 18 Learner E2E Further Education  Funding aligned but with transitional protection  Variance capped at +/- 2.1% from 07/08 • Funding at the Learner Level only  Funded by DCSF  Move from LSC to LEA in 2011 Len Tildsley • November 2007 40

Slide 41: Responsive Learner Adult Further Education  PSA targets and prioritisation  Variance capped at +/- 2.1% from 07/08 • Funding at the Learner Level only  Mid-year and end-year reconciliation with tolerance and cap  Different rates for fee paying students (42.5% in 08/09)  Funded by DIUS  Fully funded through skills accounts by 2015 Len Tildsley • November 2007 41

Slide 42: Responsive 16 to 18 Employer Apprenticeships  Monthly payments in arrears on 10th working day of the following month  25% of funding paid on achievement  Planned alongside FE provision  Funded by DCSF Len Tildsley • November 2007 42

Slide 43: Further Education Responsive Employer Apprenticeships Adult Train to Gain  Targets and priorities critical  Monthly payments in arrears on 10th working day of the following month  25% of funding paid on achievement  Part Time adult NVQs included  Funded by DIUS Len Tildsley • November 2007 43

Slide 44: Demand Led Funding  Taken 2 ½ years to develop  Single mechanism – use wholly or partly  Standard Learner Numbers (SLN)  National funding Rate per SLN  Modified by the Provider Factor  New census points  New calculation to determine ALS Len Tildsley • November 2007 44

Slide 45: Standard Learner Numbers 1  Similar to FTEs  Use GLH to Calculate  GLH determined by Awarding Body / QCA / LSC and published in LAD  Some qualification have ‘variable’ GLH  16-18 entitlement = 114 GLH  Capped at 1.75 Len Tildsley • November 2007 45

Slide 46: Standard Learner Numbers 2 SLN = Total Annual GLH 450 Len Tildsley • November 2007 46

Slide 47: National Funding Rate  One rate for each category  Co-funded rate for those paying fees (-42.5%) • 16-18 Learner Responsive • Adult Learner Responsive • Co-Funded Adult Learner Responsive • 16-18 Employer Responsive • Adult Employer Responsive • Co-funded Adult Employer Responsive Len Tildsley • November 2007 47

Slide 48: Co-Funded Rate co-funded rate = full rate – fee element  Fee element similar to current system  Fee element varies with provider factor but is not the same as the fee to the learner Fee element = full rate x Fee rate provider factor Len Tildsley • November 2007 48

Slide 49: Provider Factor  Replaces • Programme Weighting • Disadvantage uplift • Area costs • Funding amount variation on withdrawal (by using the overall GLH weighted success rate)  ONE factor for the whole college each year  No variation by team or subject Len Tildsley • November 2007 49

Slide 50: Provider Factor 2 Short Provider Programme Success Success Provider Learner GLH PWF Disadvantage Modifier Area Cost Rate Factor Factor A 200 1.3 1.040 1.033 1.03 74% 0.87 B 500 1.0 1.025 1.000 1.03 74% 0.87 Weighted Average 1.086 1.029 1.010 1.03 0.87 1.011  Based on prior year history for learner responsive  Based on actual aims delivered for employer responsive Len Tildsley • November 2007 50

Slide 51: Funding Calculation 1  For each category of learner Provider funding rate = national funding rate x provider factor Len Tildsley • November 2007 51

Slide 52: Funding Calculation 2  For each learner ££££ = provider funding rate x SLN Len Tildsley • November 2007 52

Slide 53: Example 1 Qualification Actual GLH LSC GLH SLN EDEXCEL Diploma 380 450 NCFE Additional Cert 100 120 Entitlement 48 114 Key Skill 48 48 TOTAL 576 732 1.63  National Funding Rate (16-18 LR) • £2,775 (confirmed)  Provider Factor • 1.0275 Len Tildsley • November 2007 53

Slide 54: Example 2 Qualification Actual GLH LSC GLH SLN City & Guilds Certificate 119 140 0.31 Provider Factor 1.1228 National Rate per SLN 2,345.00 Fee per SLN 996.63 Provider Rate per SLN 2,632.97 Fee Element 887.62 Cofunded Rate 1,457.38  National Funding Rate (Adult LR) ???  Funding = Len Tildsley • November 2007 54

Slide 55: Starts and Census Dates  Old census dates will no longer apply  ‘Starts’ are • >24 weeks - counted after 6 weeks • 2-24 weeks – counted after 2 weeks • <2 weeks – must attend once  Full funding eligible after this date  No funding if the student withdraws before  Starts counted in each year for multi-year programmes Len Tildsley • November 2007 55

Slide 56: Exercise 2 16 to 18 Full-Time Student Adult Learner Responsive Student Qualification Actual GLH LSC GLH SLN Qualification Actual GLH LSC GLH SLN VTCT NVQ 3 456 450 C&G Diploma 136 220 VTCT Certificate 68 100 C&G Numeracy 68 68 C&G NVQ 2 34 200 Health & Saftety 17 10 Health & Saftety 17 10 TOTAL Key Skill 48 48 Entitlement 48 114 PWF 1.095 TOTAL Disadvantage 1.062 Weighted Average Short Pr Mod 1.007 Area Cost 1.000 Success 77% National Rate per SLN £2,775 Provider Factor Provider Factor 1.011 National Rate per SLN £2,345 Fee Per SLN FUNDING Provider Rate per SLN Fee Element Cofunded Rate FUNDING Len Tildsley • November 2007 56

Slide 57: Exercise 2 Answer 16 to 18 Full-Time Student Adult Learner Responsive Student Qualification Actual GLH LSC GLH SLN Qualification Actual GLH LSC GLH SLN VTCT NVQ 3 456 450 C&G Diploma 136 220 VTCT Certificate 68 100 C&G Numeracy 68 68 C&G NVQ 2 34 200 Health & Saftety 17 10 Health & Saftety 17 10 TOTAL 298 0.66 Key Skill 48 48 Entitlement 48 114 PWF 1.095 TOTAL 922 2.05 Disadvantage 1.062 1.75 Weighted Average Short Pr Mod 1.007 Area Cost 1.000 Success 77% National Rate per SLN £2,775 Provider Factor 1.036 Provider Factor 1.011 National Rate per SLN £2,345 Fee Per SLN £997 FUNDING £4,909.67 Provider Rate per SLN £2,430 Fee Element £962 Cofunded Rate £1,383 FUNDING £949.39 Len Tildsley • November 2007 57

Slide 59: Planning Process Len Tildsley • November 2007 59

Slide 60: Planning Software Len Tildsley • November 2007 60

Slide 61: Business Plan  Updated for 08/09  Coordinated by schools  Planned at Programme Team level  Designed to address priorities  May be reviewed by LSC for the 1st time  Tries to avoid SAR/QUIP overlap Len Tildsley • November 2007 61

Slide 62: Structure  Directed Actions  Demand  Addressing Priorities  Learning Pathways  Provision Changes  Strategic Themes  Agreed Targets  Revenue Plan  Capital Bids Len Tildsley • November 2007 62

Slide 63: Directed Actions  Specific changes requested by senior management  How they will be fulfilled  Who will be responsible  Improving efficiency Len Tildsley • November 2007 63

Slide 64: Demand  Market analysis  Historical trends  Successes and Failures  Competition  Opportunities  Marketing Len Tildsley • November 2007 64

Slide 65: Addressing Priorities  Young People 14-19  Work Placements  Adult Skills • Skills for Life • Full Level 2 and 3 • Higher Skills  Employment skills  Income Generation Len Tildsley • November 2007 65

Slide 66: Learning Pathways  Progression Routes & Entry Criteria • Full Time • Part Time  Employment • Job Skills • Apprenticeship Len Tildsley • November 2007 66

Slide 67: Provision Changes  New Provision  Changed Provision  Discontinued Provision Len Tildsley • November 2007 67

Slide 68: Strategic Themes  Employer Engagement  VLE (Moodle) Implementation  ILT in the classroom  Curriculum Learning Centres  Functional Skills & Embedding  eILP  Every Child Matters Len Tildsley • November 2007 68

Slide 69: Agreed Targets  Learner Numbers  SLNs  Retention  Achievement  Attendance  Budget Surplus Len Tildsley • November 2007 69

Slide 70: Revenue Plan  Expenditure • Staffing • Agency • Non Pay  Income • Funding Allocations • Fees Len Tildsley • November 2007 70

Slide 71: Capital Bids  Link to business plan  Justification  Impact if not agreed Len Tildsley • November 2007 71

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